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Heard of ‘Black Mount’ and ‘Jim’s’ cigarettes? They’re available on the Irish black market…

https://uk.news.yahoo.com/black-market-cigarette-manufacturers-deliberately-target-irish-market-144817944.html#quvkQkW

A new survey has found that two thirds of all cigarettes for sale illegally in Dublin are manufactured specifically for the black market.

In the test purchase exercise, carried out on behalf of tobacco manufacturer Philip Morris International, it was found that these brands, known as ‘illicit whites’, made up the bulk of black market trading.

The company carries outs research in the area of the consumption of black market cigarettes around the EU. Speaking in 2013, Artyom Chernis, a representative from the company said, “The black market for tobacco is bad for business and bad for communities across the EU.”

In the course of carrying out the test purchase, a number of brands that had not appeared on the market in the UK or Ireland before were found. These included:

President,
M&J,
Black Mount, and,
Jim’s

The study was carried out by a number expert investigators, in a team headed by Detective Chief Superintendent, Kevin Donohoe, and former Scotland Yard Detective Chief Inspector, Will O’Reilly.

Speaking about the find, Donohoe said, “While this study provides just a snap shot of the illegal tobacco trade, our operatives purchased various products with relative ease throughout many parts of the city.

“The illegal trade is well organised, providing large profits for those involved, who are primarily highly organised criminal networks.”

In a statement sent out by the tobacco company it states that the illicit trade of tobacco undermines key public policy concerns in the area and undermines “the core purposes of the regulatory initiatives to reduce tobacco usage.”

In the coming months a more comprehensive test-purchase study will be carried out across Ireland.

Recently, a Eurobarometer survey found that around 21% of people smoke in Ireland, compared to a European average of 26%.

Smokie Bandits on the run

http://www.independent.ie/regionals/droghedaindependent/smokie-bandits-on-the-run-31272284.html

Illegal cigs are rife in Dundalk and Drogheda and are costing state €500 million a year

Early on Saturday morning, Drogheda town centre is buzzing. It’s the Bank Holiday weekend, there are loads of people around, shopping. But there is an underbelly here, rarely seen.

The trade in illicit cigarettes goes on, hidden in plain view and most people are oblivious to it. It’s here in Drogheda, and in Dundalk, if you know where to look and the team of former police officers from Ireland and England are experts in where to get cheap cigarettes.

The team works for tobacco manufacturer Philip Morris and are tasked with test purchasing illegal cigarettes. They travel around Ireland and Britain, hitting towns all over the country and assessing the trade in illicit tobacco. The company wants to know how big the trade is, where the cigarettes are coming from and how they are being sold.

Philip Morris also wants to know the extent of the ‘illegal whites’ – cigarettes that are manufactured in pop up factories close to the Russian border that are only made for the black market.

More importantly, the team has intelligence about the main players in cigarette smuggling in county Louth and the millions of euro they are making from it every year.

Most of the former police officers have worked undercover before. There are two main buyers – a former female detective from England and a man from Eastern Europe who speaks Polish and Latvian. They certainly don’t look like cops and it’s easy to tag along with them as they make their way around Drogheda, building on the research they have done the day before.

The man has been into a number of suspect shops the previous day and has asked to buy cigarettes. He was sold some, but most have told him to come back on Saturday. In the first store, the woman behind the counter recognises him and searches in her coat pocket, pulling out two packs of L&M – a legitimate brand, but most likely smuggled into Ireland via the suitcases of people returning from a trip to Poland or another Eastern European country.

He comes out, meets up with the other members of the team, and throws the two packs into a plastic bag. A former Met inspector writes down the location of the purchase, the cost (€5.50 a pack) and his colleague heads to a second shop. It’s a well-stocked store, and the woman behind the counter chats easily with him as he asks for cheap cigarettes. She tries to sell him some freshly baked bread while she goes in the back to get a couple of packs for him. It’s the same brand, and the same price, and these too are left with the other members of the team.

In Drogheda market, just off the main street, there seems to be no hiding of the illicit trade. Here some of the Irish cigarette sellers are selling illegal whites – cigarettes specifically manufactured for the black market and unavailable in any store in the world.

The female officer and I wander around, pretending to browse, returning to one of the stalls and asking for cigarettes. These ones are dearer – at €6.50 a pack, but represent a significant saving on the usual €10 cost of 20. They’re 821s, specially produced for the black market.

The other members of the team are stunned by the fact the cigarettes are on such public display. The former Met officer says: ‘I don’t think I have seen anything like that before – it’s quite brazen, isn’t it’.

There is no time to discuss the cigarette traders in Drogheda market as the woman has been in contact with a Drogheda man whom she got illegal cigarettes off before.

He’s still in business, by all accounts, and he meets her close to the town centre apartments where he lives. He has a sleeve (200 cigarettes) of illicit whites and he charges €55. All the while, the team sit in a jeep close-by, watching the transaction, which is over in seconds.

The next sting is just moments away as the Eastern European man has contacted a man who has agreed to meet him in a car park close to the Boyne. Unknown to the seller, there are half a dozen former cops watching nearby but he is oblivious as he chats to the buyer in his MH registered car before driving off, having sold him a sleeve of illegals.

And they’re not done yet. Another store, the woman walks in and, having been recognised from the previous day, a man pulls 200 Polish Marlboro out and sells them to her for €55. The team seems to be particularly excited by this as the branding on the Marlboro is new – just a few weeks old – and indicates these are new into the country.

There is one final purchase to make – at a shop just outside the town centre, the woman goes in and comes out with a pouch of Flandria tobacco, available only on the Continent.

On the way to Dundalk, the team chats about the illicit trade in Ireland, North and South, and in Britain. Asian and Eastern European stores are the main outlets in Britain, along with ‘old men in pubs’ but there is also a booming trade via Facebook. In the North ‘some of the little corner shops’ are selling illegal tobacco, while in the South, the markets are among the places to find illegal cigarettes.

In Dundalk, the first stop is another shop. The woman apologies to the buyer and rings a man she knows whom she says will be waiting for him on the Carrick Road. A few minutes later, there is indeed a man standing on the pavement and when we pull over, he comes over to the car and throws 200 L&Ms on the back seat before chatting to the undercover buyer, getting the cash off him (€55) and telling him he is able to get even more, if he needs it.

Back in the town centre, the female operative has managed to buy MGs off a bar worker who tells her that any of the staff will sell them to her, if she’s not there herself. A trip to another pub proves fruitless as the customer who comes in with a hold-all of illegal cigarettes has just left, but will be there around 1pm the following day.

The cigarettes and tobacco are put together into the boot of one of the cars. It’s an impressive haul for a day’s work. The team will send some of them off for testing, the rest will be destroyed. The intelligence they have gathered will be sent to Revenue.

EU agreement with big tobacco hides smugglers behind smokescreens

http://nessachilders.ie/2015/05/19/eu-deals-with-big-tobacco-keep-hiding-smugglers-behind-smokescreens/

Nessa Childers, MEP for Dublin, criticised the European Commission’s ongoing negotiations to renew an agreement on smuggling with the tobacco industry.

A founding member of an MEP working group set up to fight the interference of the tobacco industry in public policy making, Ms. Childers fears that the renewal of the secretive agreement does not properly address illicit trade, depriving the public purse of compensation for tax losses.

The original agreement came about over a decade ago on foot of a settlement of a lawsuit launched by the Commission and a number of EU countries against tobacco giants Philip Morris International, R.J. Reynolds and Japan Tobacco International over a number of offences related to cigarette smuggling, which cost these companies billions of Euros.

Speaking from Strasbourg this week, where the Commission addressed the European Parliament on the matter, Ms. Childers said:

“The Commission is making a serious mistake by entertaining contacts with the tobacco industry to renew these agreements, which are due to lapse next year.

“The initial agreements were born from a settlement to a case where the Commission accused three tobacco manufacturing giants of no less than being part of a global scheme to smuggle cigarettes, launder the profits of narcotics, fix prices, bribe officials and conduct illegal trade with terrorist groups.

“Yet these companies have been put in charge of monitoring counterfeiting in tobacco smuggling seizures. They pay the authorities whenever these are found to be genuine so, unsurprisingly, they have found only 0.5% of seized shipments in 2012 to be genuine.

“This state of affairs is a mockery of enforcement and, to make matters worse, never has a sample been analysed by an independent laboratory, and we know very little of the specifics behind this scheme.

“The Commission has been officially asked by Parliament to conduct a proper assessment of this scheme back in 2012 and this should have happened by now.

“So, not only has the fox been put in charge of the henhouse, but we also have no know idea about what is going on inside, and meanwhile we are mulling over extending its safekeeping role.

“What is more outrageous, is that while these talks are going on, these very same big tobacco companies are challenging the Tobacco Products Directive in the European Court, including its requirement for an EU-wide supply chain track and tracing system.”

“We should be working on how to ratify and implement the WHO Protocol to Eliminate Illicit Trade in Tobacco Products, which the Commission rightly wants the Council to do, rather than waste time with this farce.”

State wants tobacco packaging challenge referred to EU court

http://www.irishtimes.com/news/crime-and-law/courts/high-court/state-wants-tobacco-packaging-challenge-referred-to-eu-court-1.2190636

JTI Ireland Ltd take case against Government’s plan to bring in plain packaging

Samples of standardised packaging of tobacco products, which has been approved by the Government. Photographer: Dara Mac Dónaill/The Irish Times

Samples of standardised packaging of tobacco products, which has been approved by the Government. Photographer: Dara Mac Dónaill/The Irish Times

The State wants to have a legal challenge brought against its plan to introduce plain packaging on tobacco products referred to the Court of Justice of the European Union, the Commercial Court has heard.

JTI Ireland Ltd has challenged the Government’s plan to bring in plain packaging claiming it cannot unilaterally introduce it on its products as a member of the EU.

In proceedings before the Commercial Court JTI is seeking orders preventing the Minister for Health, Ireland and the Attorney General from commencing the provisions of the recently passed Public Health (Standardised Packaging of Tobacco) Act 2015.

JTI Ireland Ltd claims the State’s action is contrary to EU harmonisation objectives and an obstacle to trade between member states.

JTI also claims the standardised packaging law imposes stricter rules than those necessary to transpose a 2014 EU directive (2014/40/EU). The stated objective of the directive is to harmonise labelling and packaging.

The matter came before Mr Justice Brian McGovern today, who following an application by Paul Sreenan SC for JTI, agreed to admit the case to the fast-track Commercial Court division. The application was on consent.

Michael Cush SC for the State parties told the court it is his client’s intention to apply to the Commercial Court to have certain legal questions arising out of JTI’s action referred to the Luxembourg based Court of Justice of the EU.

Counsel made reference to the High Court of England and Wales decision to refer questions concerning the validity of the 2014 EU directive in a case brought by the Philip Morris tobacco company and British American against the UK Health Secretary to the European Courts.

Counsel said similar issues have been raised in that case to those being advanced in JTI’s proceedings, and it was hoped the Irish case could travel together with the British case.

In its action JTI says the Minister and the State do not have the power or competence to derogate from the provisions of the directive.

This is because harmonisation of labelling and packaging is a stated objective of the EU directive, a member state cannot adopt national measures which further restrict the free movement of goods on grounds of a high level of protection for human health.

JTI also claims the new rules, due to be introduced in May, will distort and impair the dynamics of competition in the tobacco market.

In its action JTI claims the law means all tobacco products must come in standard plain paper packaging. JTI supplies 3,100 retailers with brands including Benson and Hedges, Silk Cut, Camel, Hamlet cigars, roll-your-own like Amber Leaf and Old Holborn, and pipe tobacco.

It is part of an international tobacco group with operations in 70 countries and employs 90 people directly in Ireland. It says it paid €666.8million in tax here in 2013.

Mr Justice McGovern agreed to adjourn the matter for two weeks, to allow the State bring an application to have the case referred to the European Courts.

Court challenge to plain tobacco packaging looms next week

http://www.independent.ie/irish-news/courts/court-challenge-to-plain-tobacco-packaging-looms-next-week-31128681.html

The Irish Courts will next week begin hearing the first case of its kind taken against the State over plans to introduce plain tobacco products.

Japan Tobacco International (JTI) has instigated legal action in a bid to detail the proposals, which are being spearheaded by Children’s Minister James Reilly.

The proceedings are scheduled to begin in the Commercial Court on Monday.

Details of arguments being put forward by the State and JTI will be heard during the case, which will be open to the public.

Politically, the Government is taking a gamble in taking on the powerful tobacco giants.

Dr Reilly is adamant the measures will reduce cancer-related deaths.

More than 10 million cigarettes seized in Dublin Port

http://www.irishtimes.com/news/crime-and-law/more-than-10-million-cigarettes-seized-in-dublin-port-1.2159861

Some of the cigarettes seized at Dublin Port. Photograph: Revenue

Some of the cigarettes seized at Dublin Port. Photograph: Revenue

Customs officers seized more than 10 million cigarettes in Dublin Port over the weekend.

The 10.3 million ‘Don Corleone’ brand cigarettes had a retail value of €4.7million, a spokeswoman for the Revenue’s Customs Service said.

A mobile scanner found the cigarettes concealed in a 40-foot container which had arrived into the port from Belgium. The cigarettes were described on the manifest as “paper handkerchiefs”.

“These seizures are part of Revenue’s ongoing operations targeting the supply and sale of illegal cigarettes in the shadow economy”, Revenue said in a statement.

“ If businesses or members of the public have any information regarding the smuggling or sale of illegal cigarettes or tobacco, they can contact Revenue in confidence on free phone number 1800 295 295”.

As Europe adopts Australia’s plain packaging reforms, big tobacco fights back

http://www.smh.com.au/world/as-europe-adopts-australias-plain-packaging-reforms-big-tobacco-fights-back-20150321-1m3bwk.html

There are winners and losers in the plain packaging for cigarettes battle. Big business is trying valiantly to its protect its ground.

Weed killers: Former attorney-general Nicola Roxon has been meeting European campaigners such as Norwegian Cancer Society's Anne Lise Ryel about the push for plain paper packaging. Photo: Supplied

Weed killers: Former attorney-general Nicola Roxon has been meeting European campaigners such as Norwegian Cancer Society’s Anne Lise Ryel about the push for plain paper packaging. Photo: Supplied

“It’s a bit stunning … dominos falling everywhere.”

Mike Daube, mild-mannered health policy professor from Western Australia, is surveying the virtual battlefield in the war against big tobacco. And he likes what he sees.

“It really is the most dramatic global development in tobacco control that I can remember in more than 40 years.”

A pile of cigarette packets with plain packaging. Photo: Nic Walker

A pile of cigarette packets with plain packaging. Photo: Nic Walker

This month alone saw Ireland and Britain legislate for plain cigarette packets with big ugly health warnings, following Australia’s 2012 lead. Norway and France – and others – are hard on their heels.

These wins have come despite fierce opposition from the tobacco industry. Lawyers have threatened huge lawsuits, piles of specially-commissioned reports have been delivered to key lobbyists, legislators and opinion-makers, and the industry even (Daube’s colleagues claim) played dirty tricks along the way.

“I haven’t seen the industry as ferocious about anything in more than 40 years,” says Prof Daube. “They clearly do see it as a massive threat, especially now that so many dominos are falling.”

Also this week, billionaire philanthropists Michael Bloomberg and Bill Gates dug for small change in the sofa and found $US4 million to help developing countries fight legal threats from tobacco companies.

The fund was launched (and Prof Daube was speaking) from Abu Dhabi, where the 16th World Conference on Tobacco has the air of a war room, mid-campaign.

There were rousing speeches. Talk of tactics and strategies and alliances. War stories were shared and heads put together to try to read the mind of the enemy.

Deterrent packaging

Deterrent packaging

Dr Douglas Bettcher, director of prevention of noncommunicable diseases at the WHO, was there. He agrees tobacco control measures are being adopted at “an extraordinary pace”.

Two and a half weeks ago Ireland passed plain packaging legislation, last week similar legislation passed the UK House of Commons and Singapore announced a public consultation on plain packaging. This week the House of Lords passed it into law in the UK, Norway released a public consultation document proposing it and plain packaging bills are under discussion in Panama and South Africa, Dr Bettcher says.

This is not to mention moves in France, New Zealand, Burkina Faso and Turkey.

“All of this progress is being made despite the industry’s best efforts to thwart it,” he says. “Given that the industry fights hardest against the most effective tobacco control measures, it must be very worried about what the globalisation of plain packaging could do, and it is very busy concocting false evidence and lobbying hard against it.

“This is an important moment in the history of tobacco control. We are witnessing the creation of a global movement.”

A keynote presenter in Abu Dhabi was Dr James Reilly, a mellifluous Irishman with a flair for the dramatic. He sounds like a victorious general back from the front.

This month Ireland became the second country in the world and the first in Europe to enact plain packaging legislation. Reilly shepherded the law through, as Minister for Children.

“This has been a long journey,” he says. He called for a round of applause for Australia for paving the way and inspiring their decision to follow – however, he says, “there were far more twists and turns than we ever anticipated.”

To start with, European law did not permit plain packaging. Ireland had to use its 2013 presidency of the EU to push new laws through.

“But when the directive made its way to the European Parliament we saw the full power and influence of the tobacco industry at work,” Reilly says.

Documents leaked to The Observer newspaper showed 161 lobbyists were hired by just one tobacco company. Philip Morris International strategised to delay the directive until the EU presidency passed to tobacco-friendly Lithuania.

In one year lobbyists claimed almost £1.24 million in expenses for meetings with MEPs, The Observer reported. They held personal meetings with a third of all the huge parliament’s members, some up to five times. They targeted farmers’ organisations, retail bodies and trade and business organisations.

“Members of the EU parliament complained that the scale of lobbying on this directive was unprecedented,” Reilly says. “There was a very real danger that the parliament would vote in favour of reducing the size of warnings.”
The Irish prevailed in Brussels. The focus switched back home – and the tobacco industry followed.

They enlisted members of the EU parliament, US congressmen, Indonesian farmers and Irish retailers to their cause.

“We were lobbied on a scale that Irish politics had never seen before,” Reilly says.

Benson and Hedges owner JTI Ireland (a 55-billion-euro multinational based in Geneva) warned in the last desperate week before the bill went to parliament, that the government had just days to withdraw or face a High Court claim for hefty damages.

“(Their) letter was especially aggressive,” says Reilly. “Not only did they attempt to tell a sovereign government that we did not have the authority … they attempted to tell us how far we could progress it through our parliament and insisted that we provide them with a written undertaking within a matter of days not to progress it any further.”

Imperial Tobacco and Philip Morris echoed the threats.

“But we had built a strong coalition that proved impenetrable,” Reilly says. As a doctor he had seen firsthand the devastation caused by lung cancer. He told his stories to his colleagues. Not one member of parliament voted against the law, he says.

“[Big tobacco’s] only aim is to protect their profits. Our aim and our duty is to protect the health of our people especially that of our children. We have the truth on our side and truth, as an old lady once told me, is not fragile, will not break. Nor will we.”

Cigarette companies including BAT are now “considering their legal options”, Fairfax was told.

Then it was the UK’s turn. Prime minister David Cameron had once been a plain packaging fan but by 2013 the plan sat in the coldest corner of the backburner after his Australian strategist-for-hire Lynton Crosby reportedly told him to “scrape the barnacles off the boat” in preparation for the 2015 election.

Crosby, who also consults for Philip Morris, denied that he had ever discussed plain packaging with the PM. But for whatever reason, it seemed dead.

But then up popped the policy again, suddenly, amid the dying embers of the final legislative sitting. Fairfax understands the government’s hand was forced by a strong push for a private members bill in the House of Lords.

Again, the tobacco companies campaigned strongly. Media were heavily briefed against plain packaging, as were MPs. Opinion columns rehearsed the tobacco lobby’s song sheet (to be fair, by now the anti-tobacco lobby’s arguments were just as well-practised).

The law passed, despite a sizable rebellion among MPs (and many who had to abstain, citing conflicts of interest or revealing previous tobacco lobby gifts such as tickets to the Chelsea Flower Show).

A spokesperson for British American Tobacco told Fairfax there will be legal action. “This legislation is a case of the UK Government taking property from a UK business without paying for it. That is illegal under both UK and European law.”

“The UK Government has left us with no other choice… Any business that has property taken away from it by the state would inevitably want to challenge and seek compensation.”

You could call it The Castle argument. As Darryl Kerrigan might put it, a cigarette packet is more than just a drawing on a box. By removing a company’s right to use their own brand, you are stealing something from them. The tobacco lobby has other arguments but this is the core of their fight: not to lose their identity.

Unlike in The Castle, this line failed in Australia’s High Court. But it is now being fought in two international jurisdictions including the WTO, on the basis that the laws breach Australia’s treaty obligations. And it will be fought again against the UK and possibly Ireland.

And now it is Norway’s turn to enter the fray.

This week, in a restaurant on a scenic hill overlooking Oslo, Norway’s health minister lunched with the local secretary-general of the Norwegian Cancer Society, Anne Lise Ryel, on the day of the launch of a consultation paper on plain packaging – which also proposed new transparency rules on tobacco industry lobbying.

There was another guest at the table: Nicola Roxon, Australia’s former health minister and attorney-general, the politician who used her two key roles in the former Labour government to formulate and then enact the laws that set a precedent for the world.

Roxon is out of politics but finds herself in demand globally for her experience in the fight for plain packaging.

“We were looking to Australia to see what happened and to learn,” Ryel tells Fairfax. “In this consultation paper Australia is mentioned many times.”

They wanted to see, particularly, how the industry would fight. “All the time they become more sophisticated because they need to… they always try to be a step or two ahead,” Ryel says.

They have seen dirty tricks already: in a previous legal fight against Philip Morris the tobacco companies spread their money around Oslo’s law firms, leaving them unable to advise the government.

Bent Hoie, Norway’s health minister, tells Fairfax that Australia should be “commended” for leading the way. “That has been very important for us, we have a complete example to follow. We can use their experience and be better prepared for what kind of resistance we will meet.”

Ms Roxon says she is proud – and Australia should be proud of what it has achieved and what might yet be achieved following Australia’s lead.

“I’m really pleased to be able to share our experience and hope that other countries will be able to avoid some of the problems,” she says.

“You can’t just have the first, you need to have the second, third and fourth for it to become something that people will do as a matter of course.”

She says the Norwegians are “super-organised and super-committed” but have been picking her brains on the tobacco industry’s likely response, especially how they brought employer and business lobbies into the argument.

It may sound like big tobacco is losing an existential battle. But not so fast. Last year the world smoked more than 5.8 trillion cigarettes. The number was comparable to the year before, in which tobacco industry profits were more than $US44 billion according to Tobacco Atlas.

Barely a 10th of the world’s population lives in countries with bans on tobacco advertising. Low- and middle-income countries now account for more than 80 per cent of tobacco users – and tobacco-related deaths.

The reduction in smoking rates in countries such as Britain, Australia and Brazil was more than offset by growing consumption in China alone.

“Developing markets are driving our growth – while developed markets are the source of current profits, developing markets are the drivers of future profits,” a BAT spokesperson tells Fairfax.

So why bother with Norway, when you’ve got China?

Ryel says she believes her country, and others, are setting an example, and providing a template that others can follow.

“That’s why it’s so important that we help the other countries, to see the force we put the other way. What happens in Norway, we think and hope is helpful for other countries that want to go on board, they will feel more secure.”

If this idea catches on, it could snuff out tobacco on a global scale

President signs plain packaging into law

http://www.tobaccojournal.com/President_signs_plain_packaging_into_law.52891.0.html

President Michael Higgins signed the Public Health (Standardised Packaging of Tobacco) Bill into law which says manufacturers have until May, 2016, to retool and start producing plain packs for the Irish market, RTE News said.

Plain packaging applies to cigarettes and roll-your-own products. The law mandates a matt finish and uniform colour for portions of the pack not devoted to graphic health warnings. Under EU rules, those warnings must cover two thirds of the front and back. Manufacturers must begin producing the plain packs from May, 2016, and only plain packs may be sold from May, 2017.

Commons votes plain packs with big majority

http://www.tobaccojournal.com/Commons_votes_plain_packs_with_big_majority.52892.0.html

The House of Commons in a 367-113 bipartisan vote opted to introduce uniform packaging for cigarettes and hand-rolled tobaccos, setting the stage for final parliamentary approval on 16 March, the Guardian reported.

Plain packaging would mandate a standard green/brown colour and limit branding on packs that mostly would display graphic health warnings. Approval in the House of Lords for a bill that currently applies only to England is expected, the newspaper said on its website. Regional authorities in Scotland, Wales and Northern Ireland also are expected to adopt the plain packaging provisions.

Major tobacco companies have said they will contest standardised packaging in the courts, both in the UK and in Ireland, which earlier this week became the second country after Australia to approve plain packs. Two court challenges are pending against the Australian law. The UK version would take effect in May, 2016. In Ireland full implementation is planned one year later.

“This legislation is a case of the UK government taking property from a UK business without paying for it. That is illegal under both UK and European law”, said Jerome Abelman, corporate and regulatory affairs director at British American Tobacco. “Legal action is not something we want to undertake, nor is it something we enter into lightly – but the UK Government has left us with no other choice.”

Irish State has €9m invested in the tobacco industry

http://www.irishexaminer.com/business/irish-state-has-9m-invested-in-the-tobacco-industry-316911.html

The Government was yesterday accused of double standards and ‘complete hypocrisy’ in its fight against tobacco after it emerged that the State has multimillion-euro investments in the tobacco industry.

Fianna Fáil Finance spokesman Michael McGrath made the charge after figures show that the State has €50m invested in so-called sin stocks, made up of shares in firms in the tobacco, defence, and alcohol industries.

In a written Dáil response to Mr McGrath, Finance Minister Michael Noonan confirmed that the State, through its Ireland Strategic Investment Fund, has €9.6m of investment in firms in the tobacco industry; €27.1m in firms in the alcohol industry; and €14.1m in companies in the aerospace and defence sub-industry.

The revelations come as the Oireachtas this week passed legislation to introduce plain packaging of cigarettes. The bill must now be signed by President Michael D Higgins to bring the rules into law. It has put the Government on a collision course with firms in the industry.

A recent study by Credit Suisse, on the best equity market performers over the very long term, shows that nothing beats tobacco and alcohol stocks.

However, Mr McGrath has described as “utterly hypocritical” the fact that the State holds over €9.6m in investments in tobacco stocks given the recent legislation.

Mr McGrath said: “These figures highlight the extraordinary double standards of the Government on the issue of tobacco in particular, but also on alcohol and armaments.

“On the one hand, [Children’s] Minister James Reilly has declared war on the tobacco industry and described it as evil, while on the other hand the Government is giving the tobacco industry a boost by actively investing in it. The Government’s approach to tobacco is completely hypocritical.”

Mr McGrath added:

“There is a strong case for the National Pension Reserve Fund to review its ethical investment strategy and completely screen out stocks in harmful industries such as tobacco and armaments until such time as the fund completes its transition to investment in the domestic economy.

“This type of ethical strategy has been successfully implemented in countries such as Norway and would ensure the State is not seen as complicit in their activities.”

Separate figures provided by Mr Noonan show that the State’s income from tax revenues on tobacco and alcohol dwarf any earnings the State may receive in dividends from their shares in those firms.

He confirmed that the estimated tax revenues in 2014 from tobacco sales were €1.29bn, with the tax revenues from alcohol totalling €2.19bn.

Legal firm Arthur Cox represents a tobacco firm threatening to halt the plans to introduce plain packaging. Figures show it also carried out lucrative work for the Department of Finance and Garda Síochána Ombudsman Commission (GSOC) last year.

Arthur Cox represents Japan Tobacco Ireland, a firm which threatened High Court action over the plans.

Arthur Cox advises both the HSE and the Child and Family Agency, Tusla, and new figures show that the legal firm last year received €824,247 in fees from the Department of Finance.

The company also received €331,379 in legal fees from GSOC last year and an additional €79,198 from Revenue.